The bill S.267 proposes significant amendments to Vermont's land use and development laws, with a strong emphasis on facilitating residential housing construction and improving municipal zoning processes. Key provisions include the repeal of certain road construction and access regulations that previously impeded housing projects, as well as the extension of interim exemptions for priority housing projects and accessory dwelling units, allowing construction without permits until July 1, 2030. The bill also introduces new definitions and requirements for Tier 1A and Tier 1B areas, streamlining the qualification process for municipalities and promoting housing development within designated growth centers. Additionally, it mandates that municipal plans analyze housing needs and constraints, ensuring local governments actively address barriers to housing development.

To further support housing initiatives, the bill requires documentation of progress on housing unit construction during municipal land use plan adoption or renewal. It increases the annual cap on tax credits awarded by the State Board from $3,000,000 to $5,000,000 and authorizes $250,000 in five-year tax credits for an additional 26 years for the Down Payment Assistance Program. The legislation allocates $6,000,000 for a pilot project aimed at reducing housing development costs through modular construction and establishes two new positions within the Department of Housing and Community Development, with a budget of $300,000 for salaries and $6,000,000 for program funding. An additional $250,000 is designated for increasing municipal planning grants to help meet housing targets, with the act set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 10-6001(3)(A), 10-6001, 10-6001(3), 10-3)(D), 10-3, 10-6081, 10-6033, 10-6034, 10-6081(z), 24-4460(g), 24-4460, 24-4412(1)(D), 24-4412, 24-4412(1), 24-4413, 32-5930ee